Business at Renault is not really going well. Now speculation about an end to the alliance with Nissan is doing the rounds. And the former CEO is wanted with an international arrest warrant.
Despite strong headwinds, the French carmaker Renault turned over more than expected in the first quarter.
Revenue fell as a result of the Russian attack on Ukraine and the ongoing chip shortage – but not as much as analysts feared. Meanwhile, there is speculation as to whether Renault will part with part of its stake in the Japanese alliance partner Nissan.
In the first three months of the year, sales fell by almost three percent to 9.75 billion euros, as Renault announced in Boulogne-Billancourt. The number of cars and light commercial vehicles sold fell significantly and, at just under 552,000 units, was around 17 percent below the figure for the same quarter of the previous year.
Meanwhile, according to circles, the Renault board of directors is said to be considering a partial sale of its approximately 43 percent stake in Nissan. The Japanese carmaker could buy back some of its own papers, the Bloomberg news agency reported. Renault and Nissan spokesmen declined to comment on the information, the report said.
The package has a market value of around seven billion euros. Renault shares rose by up to eight percent after the report, but quickly gave up the gains. Renault is currently valued on the financial market at almost seven billion euros, which is about as high as the stake in Nissan. With the fresh money, the French could strengthen their division around electric vehicles.
The alliance between Renault and Nissan almost collapsed in 2018 as a result of the scandal surrounding their former CEO Carlos Ghosn. This is now being sought by the French judiciary via an international arrest warrant.
Arrest warrant for ex-CEO Ghosn
As the public prosecutor’s office in Nanterre near Paris announced, five arrest warrants had been issued in the course of investigations into alleged embezzlement of funds at Renault and money laundering. Apart from Ghosn, these were directed against the current and former heads of an automobile trading company in Oman, Suhail Bahwan Automobiles (SBA). The French judiciary is interested in payments between the alliance of Renault, Nissan and Mitsubishi and SBA that are considered suspicious for almost 15 million euros.
Ghosn had saved Nissan from bankruptcy and forged the alliance of car manufacturers. On November 19, 2018, he and his former right-hand man, the American Greg Kelly, were arrested in Tokyo and charged with violating stock exchange regulations, among other things. While Kelly remained in Japan, Ghosn fled to Beirut via Turkey in a private jet, violating strict bail requirements. Ghosn has repeatedly denied the allegations against him in Japan. He sees himself as a victim of a conspiracy to prevent closer ties between Nissan and Renault.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
